Preparation services performed in 2016 will be covered under the new Statement on Standards for Accounting and Review Services (SSARS) No. 21. Submission of financial statements to a client who is not required to or has not engaged the accountant to perform an audit, review, or compilation must follow the new SSARS No. 21 guidance. Here are 5 things to know if your accountant suggests these preparation services:
- Requires the accountant to obtain a signed engagement letter
- Requires and accountant to include a legend on each page of the financial statements stating that no assurance is being provided
- Does not require the accountant to be independent.
- May be applied to financial statements with or without disclosures
- Previously known as ‘Management use only’ reports
If you are interested in learning more about preparation services, please contact your MarksNelson professional at 816-743-7700.